iPhone revenues fall 23%, the worst quarter in the history of Apple device

2016 being a difficult year for Apple, the slowdown in your business is sticking significantly, which is maximized when more than half of their profits depend on a single product, the iPhone, which for this new quarter has fallen again Apple dragging the second consecutive quarter in its history.

Apple is presenting the financial results for the third fiscal quarter ended in late June, which show revenues of 42.358 million dollars, a fall of 15% over the same period last year, all derived from a considerable drop in sales in virtually all its products.

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iPhone sales fall for the second consecutive quarter and Apple fails to recover

The star device Apple is in free fall, the iPhone presented for the first time since its launch in 2007 negative numbers during the last quarter, and now for the second consecutive quarter Apple has not managed to come back and iPhone sales fall by 15% over the previous year, remaining at 40.4 million units in the quarter with revenues of 24,048 million dollars, i.e. 23% less revenue than the previous year.

An interesting point is the fact that the average price of the iPhone has dropped to $ 595 this quarter driven by the launch of the iPhone, which when compared to the same quarter last year we see that the average price was $ 662, which means that the fall in sales is not due to price but to a general lack of interest in the product.

iPad exceeds expectations and benefits Apple in the bag

Virtually all Apple products have fallen over the previous year, but curiously the company was ready for it, as its sales expectations for this quarter were very reserved, therefore the Wall Street analysts expected a worst case scenario, but the numbers shown by Apple surprised, incredible as it seems, and this is already reflected in their actions presenting an increase of 5% in after- hours trading.

Another factor that helped Apple’s stock will not collapse was surprisingly the iPad, as estimates showed a participation downward as in previous quarters, but for this report Apple’s tablet is increasing its revenue for the first time after eight quarters, with sales of 9.9 million units, 9% less than the same quarter last year, but with revenues of 4,876 million, i.e. an increase of 7% over the previous year.

Mac down, but services are growing driven by Apple Pay

Regarding Mac we find a drop of 11% in units and 13% in revenue, falling by 4.2 million units to 5,239 million; this occurs mainly because this year has been no launches of new computers, which has caused much of consumers who want to upgrade are waiting.

On the other hand, this quarter Apple Pay came to save the section “Services”, where a 19% increase in revenue driven presented a growth of 405% in users of mobile payment system from Apple, but there is also an increase in revenue from the App Store and iCloud.

Under the heading “Other Products” where are the Apple TV, Apple Watch, Beats, iPod and accessories, we have a drop of 16% , to 2,219 million dollars, where it is difficult to know what happened because Apple does not break this section, but if we see the recent study by IDC where the Apple watch was a drop of 55%, just see out there go the shots.

You may also like to read another article on iMindSoft: Microsoft cloud grows by 102%, while its mobile sink by 71%

An uncertain future for Apple

During the call to investors, Tim Cook and Luca Maestri have given details of what we would expect for the next quarter and overall Apple as a company.

According to Tim Cook “The iPhone was an unprecedented success for the company”, depleting their inventory in many regions and causing the “switchers” who come from Android have increased by approximately 30%.

As expected, the conversation took to the field of innovation and the future, where Cook briefly ‘Pok√©mon’ spoke? [Sic] mentioning that augmented reality can bring us new and exciting experiences, but here the developers are who have the final word, as Apple works with them and only provides the tools.

During the conference a journalist threw a questioning about the rumors of the next iPhone, mentioning that if he fulfilled everything we’ve seen so far the company would be in serious trouble due to lack of innovation in its flagship product, to which Cook just simply answer no talk of future devices.

Finally, Maestri launches a projection reservations for next quarter, which tells us that the downward trend will continue, which is obvious when a product like the iPhone represents 57% of revenue for a company the size of Apple.

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